NetCents, which offers products and services that allow businesses to accept cryptocurrency payments from customers by providing them with instant settlements, saw its net loss fall thanks to an increase in transactions and a reduction in operating costs, putting the firm in a strong position going forward..
Transactions in the third quarter increased by 296% compared to the second quarter, the company said in a statement, while merchant processing revenue came in at $63,178, up 498% compared to the preceding quarter.
"This has resulted from the business development team driving new sales and partnership initiatives and demonstrating how simple it is to accept cryptocurrency as a form of payment. The Company has also attended several trade shows in new and upcoming industries, and we will be the merchant processing leader in these industries.," it noted.
NetCents said its operating costs decreased by 46% year-on-year for the nine-month period ended July 31, 2019, while its net loss for the nine month period fell by 54%.
It added: "Between the increase in revenues and the Company's growth indicators along with the corresponding decrease to our operating costs, the Company is in a strong position as it works towards its breakeven point, which should be obtained within a 24-month period."
The company had a cash and cash equivalents position of $2.21 million and net working capital of $759,000 as at July 31, 2019 compared to cash and cash equivalents of $54,000 and a working capital deficiency of $1.21 million at April 30, 2019, which it said shows the group is in a much better position to cover expenditures over the next period.
In afternoon trade in Toronto, Netcents shares were 2.25% higher at C$0.46 each.
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